Why is Tata Motors planning to cut production at its plants?

That is correct, Tata Motors is looking to cut production at its car plants in the coming months and that is due to an acute shortage of microchips. Nowadays, each car is fitted with microchips to make it a smart car and the world has seen a major supply chain bottleneck in supply of microchips. The global shortage of semiconductors is despite global giants like Taiwan Semiconductors manufacturing at peak capacity.

It is not just about Tata Motors, but the problem is there for other auto companies too. In fact, other auto companies in India have already announced cutbacks in output due to the chip shortage that is rampant today. Earlier, Maruti had hinted at up to 60% production cut for the same reason. Even M&M, Nissan, MG Motors and Ford are going for output cuts. Tata Motors has not exactly specified how much it plans to cut from regular output.